Looks as if the DOT has given its Final Approval for the Route Transfer between AA and AS for the LAX-MEX Route. http://aviationblog.dallasnews.com/2015/06/american-airlines-gets-final-ok-to-fly-los-angeles-mexico-city.html/
DOT give Final Approval for LAX-MEX
- Thread starter Hope777
- Start date
Glenn Quagmire
Veteran
- Apr 30, 2012
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That will be a huge money maker for AA. It will also enhance the the great LAX market and cement their domination.
"The DOT said that Delta contends that if the Department were to approve the transfer without conducting a proceeding, logic and precedent will compel the same deference to all future market-based transfers, and the Department should straightforwardly announce this policy in its final order.
DOT in its ruling said in deference to Deltas point that theres a new U.S.-Mexico air treaty on the way, it was approving the route transfer for only one year.
However, the Department is not persuaded to grant Deltas request for a generic Department policy pronouncement about future transfers. Any future applications seeking the transfer of international route authority will be considered on the record and in the circumstances presented at that time."
"The DOT said that Delta contends that if the Department were to approve the transfer without conducting a proceeding, logic and precedent will compel the same deference to all future market-based transfers, and the Department should straightforwardly announce this policy in its final order.
DOT in its ruling said in deference to Deltas point that theres a new U.S.-Mexico air treaty on the way, it was approving the route transfer for only one year.
However, the Department is not persuaded to grant Deltas request for a generic Department policy pronouncement about future transfers. Any future applications seeking the transfer of international route authority will be considered on the record and in the circumstances presented at that time."
WorldTraveler
Corn Field
- Dec 5, 2003
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it's a one year transfer and given that the new treaty is effective in 6 months means that DL will be in the market just a few months after AA starts.
and has AA announced a start date and the ability to gain slots at MEX? B6 is operating its new flights with late night arrivals and early morning departures
if the route was a huge money maker for AS, they wouldn't be transferring it. It is hard to imagine how the route will become so much more profitable for AA than it was for AS given that AS' costs are more than 10% lower than AA's and AA and AS can still codeshare on most of the same flights.
the best part of the airline industry is that data is public and it will be possible to know how much better AA performs than AS did/has.
and has AA announced a start date and the ability to gain slots at MEX? B6 is operating its new flights with late night arrivals and early morning departures
if the route was a huge money maker for AS, they wouldn't be transferring it. It is hard to imagine how the route will become so much more profitable for AA than it was for AS given that AS' costs are more than 10% lower than AA's and AA and AS can still codeshare on most of the same flights.
the best part of the airline industry is that data is public and it will be possible to know how much better AA performs than AS did/has.
"Those who think [Delta] will pack its bags and leave its presence in [Los Angeles] will be in for a rude surprise. [Delta] still is the largest [U.S. international] airline in [Los Angeles] and will still operate more than enough flights to depress yields [internationally] and [to Mexico] as long as it takes to finish [Alaska] off once and for all.... and in the meantime, [Delta] will be pulling traffic left and right off of [AA]."
A classic - updated for a new outrage. Sounds about right.
A classic - updated for a new outrage. Sounds about right.
robbedagain
Veteran
WorldTraveler
Corn Field
- Dec 5, 2003
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Even with the addition of two flights by AA, DL will still be the largest int'l carrier at LAX including to Asia where AA seemed so sure it could build its own presence.
suppose the competitive environment is just as I said it would be such that neither AA or any other airline is being given a red carpet welcome just because they all of the sudden wake up and realize they need a presence in a specific region?
you do realize that DL will start its own LAX-MEX flights so at best AA gets a couple month headstart?
suppose the competitive environment is just as I said it would be such that neither AA or any other airline is being given a red carpet welcome just because they all of the sudden wake up and realize they need a presence in a specific region?
you do realize that DL will start its own LAX-MEX flights so at best AA gets a couple month headstart?
Good for Delta if it starts flying LAX-MEX at some point, and wants to dump even more superfluous capacity into yet another already-well-served market in which it needs to strategically invest to keep up with competitors. Nobody really cares much except Delta's internet discussion forum P.R. department.
Back here in reality, AA will be flying this route within 90 days, regardless of when Delta does or doesn't start service, and/or does or doesn't have some form of antitrust-immunized alliance with Aeromexico to jointly coordinate fares or schedules, and/or whether Delta does or doesn't sue the DOT. In the meantime, I suspect AA is far more focused on continuing to extend its leading position at LAX, including continuing to grow its international presence at the airport - as it has been doing (with two new flights to Latin America launching this week).
Back here in reality, AA will be flying this route within 90 days, regardless of when Delta does or doesn't start service, and/or does or doesn't have some form of antitrust-immunized alliance with Aeromexico to jointly coordinate fares or schedules, and/or whether Delta does or doesn't sue the DOT. In the meantime, I suspect AA is far more focused on continuing to extend its leading position at LAX, including continuing to grow its international presence at the airport - as it has been doing (with two new flights to Latin America launching this week).
WorldTraveler
Corn Field
- Dec 5, 2003
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DL WILL fly LAX-MEX at some point.
If DL wants to increase flights including to PVG and MEX, it is capacity dumping.
If AA wants to, it is market demand according to your jilted view of the world.
The market, however, values DL's service more than AA's which is why DL's average fares are higher.
The REALITY is that AA's capacity is excess and AA will get at best a couple month headstart on its LAX-MEX service which DL will start as well.
If DL wants to increase flights including to PVG and MEX, it is capacity dumping.
If AA wants to, it is market demand according to your jilted view of the world.
The market, however, values DL's service more than AA's which is why DL's average fares are higher.
The REALITY is that AA's capacity is excess and AA will get at best a couple month headstart on its LAX-MEX service which DL will start as well.
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,721
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,721
you would have to go back and ask DL.
Since DL is still seeking Mexican government approval for its enhanced arrangement with AM and clearly is doing so within what it and AM believes is allowed under the revised treaty, it is still very possible that there is no basis for renouncing anything at this point.
but Mexico is a sovereign country and can act as it sees fit.
Since DL is still seeking Mexican government approval for its enhanced arrangement with AM and clearly is doing so within what it and AM believes is allowed under the revised treaty, it is still very possible that there is no basis for renouncing anything at this point.
but Mexico is a sovereign country and can act as it sees fit.
